Bitcoin, the newest craze in currency and trade has been the focus for many investors over recent months. The virtual currency has even grabbed the attention of the financial giant JPMorgan Chase and the financial giant has filed a US patent application for a unique payment system that is completely computerized and seems similar to Bitcoin. Bitcoin has changed the way people invest, buy and sell online, and more in large part thanks to its anonymity and accessibility.
Bitcoin offers a way to make anonymous, electronic payments possible over the internet with no exchange of personal information or fees. Such a cryptocurrency offers the growing promise of virtual buying and selling and the growing popularity of online shopping. At the same time, traditional finance companies, banks, and institutions are trying to come to terms with the new trends and work to find ways to stay ahead of the curve.
Building Wealth with Bitcoin
Bitcoin is a virtual currency that is thought to be a very strong buying tool to use in the times to come. It’s a decentralized currency that exists mainly in digital form. It is not issued or guaranteed by central banks. It began in 2009 as an open source project and is shared over the online computer network with the benefit of having an untraceable transaction. The new system would enable anonymous payments. Bitcoin set a standard when it attracted the largest investment to date in virtual currency at a staggering $25 million. Currently there are 12.1million bitcoins in circulation. When the supplied amount reaches 21million bitcoins no more will be made.
Overstock plans to become the first big US online retailer to accept bitcoin. They plan to begin accepting it next year. Overstock sells a variety of general merchandise and the NASDAQ listed it as having annual revenue of just over $1 billion last year. There must be something to it all since JP Morgan filed a patent on the new bitcoin style payment system. Patrick Byrne the company’s libertarian CEO considers the currency to be thought of as a refuge from governmental control.
Nike, Wal-Mart, Lowes and CVS are among 700,000 other American businesses turning towards bitcoin. Economists predict bitcoin could add a new international monetary system especially with the addition of bitcoin casino banking. 36 cities across 20 states already allow citizens to pay for everything from bills to parking tickets using bitcoin. Bitcoin will serve as an alternative to credit card and electronic check payments. Legitimate internet sites such as Reddit and Baidu are among others accepting the new currency.
Benefits to Buying and Selling Bitcoin
Bitcoin has a number of advantages:
- Because it is the first crypto currency to gain the public’s attention and trigger the imagination, Bitcoin has a huge advantage over other virtual currencies that may try to capitalize on the growing trend and interest
- Unlike other forms of currency, there is a distinct limit to how much Bitcoin can be produced. No more than 21 million Bitcoins will ever exist so it is unlikely to drop in value due to an influx of currency. It avoids the major issue facing the American dollar today.
- As one of the few decentralized currency, Bitcoin does not have any ties to any one organization or entity, there is no government interference and there is no manipulation by a single investor or producer.
- Transaction costs are much lower and there are very limited fees when compared to typical online transactions with a credit or debit card. Bitcoin works like online cash- it is quick and easy.
- Bitcoins are more anonymous and have less of a paper trail than bank accounts and credit cards have. You set up your own “wallet” on your computer and there is no need to give personal or financial information. You can have unlimited wallets on the same computer as well.
- No high-ranking authorities have the power to manipulate, withhold, or affect the availability or the value of Bitcoins.
- Bitcoins are an independent form of currency that could be used around the world. The value is the same wherever you are. There would be no more concerns over converting US dollars into Euros or some other currency. Bitcoin is a Bitcoin whether you are in the United States or in Japan.
People are now building real wealth buying and selling Bitcoin, but when is the best time? Really that comes down to your investment decisions, when the price is somewhere you can afford, and when the price for selling helps you turn a profit.